US Threatens EU With $4 Billion in Extra Tariffs

WASHINGTON (CN) – In a new volley to what it calls unfair European Union subsidies on aircraft, the United States is readying another $4 billion in tariffs against European countries.

Building on a $21 billion list of tariffs announced in April, the new tariffs would target meats, cheeses, olives, coffee and certain chemicals and metals, according to a press release from the U.S. Trade Representative. The new duties would be dependent on the findings of the World Trade Organization arbitrator regarding EU subsidies on aircraft.

“In the event the arbitrator issues its decision prior to completion of the public comment process on the supplemental list, the USTR may immediately impose increased duties on the products included in the initial list and take further possible actions with respect to products on the supplemental list,” the U.S. Trade Representative’s Office said in a statement Monday.

The U.S. dispute with the European Union over subsidies to Airbus dates back more than a decade, with the United States first challenging the subsidies at the World Trade Organization in 2004. The  United States says the EU subsidies have harmed the market shares of domestic companies, in particular Boeing, and the issue is now before an arbitrator.

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